* Non-GAAP income and earnings per share are non-GAAP financial
measures, as noted in the discussion of non-GAAP results below. A
reconciliation of non-GAAP financial measures to their comparable GAAP
financial measures is included in the tables following this news release.

**CC: Constant Currency

EXECUTIVE COMMENTARY

"I am pleased with our performance in the first quarter and the start we
made to fiscal year 2014," said CA Technologies Chief Executive Officer
Mike Gregoire. "We did better than expected on the revenue line and were
able to capitalize on organizational efficiencies, expense management
and a tax benefit to drive earnings growth. Our cash flow from
operations was down, but that was expected and we are confident in
meeting our full year outlook in all areas.

"We are beginning to make progress in driving efficiencies across our
business, getting traction in SaaS, Mobility and new customer
acquisition, as well as improving the overall competitiveness of our
products," Gregoire said.

REVENUE AND BOOKINGS

First Quarter FY14 vs. FY13

(dollars in millions)

FY14

% ofTotal

FY13

% ofTotal

%Change

%ChangeCC**

North America Revenue

$717

64%

$726

63%

(1%)

(1%)

International Revenue

$411

36%

$419

37%

(2%)

0%

Total Revenue

$1,128

$1,145

(1%)

(1%)

North America Bookings

$423

51%

$326

59%

30%

30%

International Bookings

$401

49%

$227

41%

77%

85%

Total Bookings

$824

$553

49%

53%

Current Revenue Backlog

$3,429

$3,527

(3%)

(2%)

Total Revenue Backlog

$7,385

$7,771

(5%)

(4%)

**CC: Constant Currency

During the quarter the Company saw a significant increase in its
mainframe renewals, and demand for its mobile device management,
Software-as-a-Service and Nimsoft monitoring solutions.

The Company executed a total of 9 license agreements with incremental
contract values in excess of $10 million each, for an aggregate
contract value of $323 million. During the first quarter of fiscal
year 2013, the Company executed a total of 4 license agreements with
incremental contract values in excess of $10 million each, for an
aggregate contract value of $61 million.

The weighted average duration of subscription and maintenance bookings
for the quarter was 3.10 years, compared with 2.79 years for the same
period in fiscal year 2013.

EXPENSES AND MARGIN

First Quarter FY14 vs. FY13

(dollars in millions)

FY14

FY13

%Change

%ChangeCC**

GAAP

Operating Expenses Before Interestand Income Taxes

$900

$764

18%

18%

Operating Income Before Interestand Income Taxes

$228

$381

(40%)

(39%)

Operating Margin

20%

33%

Effective Tax Rate

(54%)

35%

Non-GAAP*

Operating Expenses Before Interestand Income Taxes

$702

$705

0%

0%

Operating Income Before Interestand Income Taxes

$426

$440

(3%)

(2%)

Operating Margin

38%

38%

Effective Tax Rate

14%

31%

*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this news
release. Year-over-year non-GAAP results exclude purchased software and
other intangibles amortization, share-based compensation, capitalization
(an add-back) and amortization of internal software costs, Board
approved rebalancing initiatives and certain other gains and losses. The
results also include gains and losses on hedges that mature within the
quarter, but exclude gains and losses on hedges that do not mature
within the quarter.

**CC: Constant Currency

GAAP and non-GAAP EPS were positively affected by $0.41 and $0.14,
respectively, from the reduction in the Company's effective tax rate.
The Company recognized a net discrete tax benefit of approximately
$181 million in the first quarter of fiscal year 2014, primarily from
the resolution of uncertain tax positions upon the completion of the
examination of U.S. federal income tax returns for the fiscal years
2005, 2006 and 2007.

GAAP operating expenses in the first quarter were adversely affected
by approximately $120 million in costs associated with the rebalancing
actions announced on May 7, 2013, resulting in a negative impact of
$0.17 on GAAP EPS.

GAAP and non-GAAP operating expenses were positively affected by lower
personnel costs related to the rebalancing actions and other
operational efficiencies.

In the first quarter of fiscal year 2013, the Company closed a
transaction that assigned the rights to certain intellectual property
to a large technology company for $35 million. GAAP and non-GAAP EPS
were positively affected by about $0.05 each from the transaction.

GAAP and non-GAAP operating margins in the first quarter of fiscal
year 2013 were positively affected by the intellectual property rights
assignment by 3 percentage points each.

SEGMENT INFORMATION

Starting in the first quarter of fiscal year 2014, the measure of
segment expenses and segment profit was revised to treat all costs of
internal software development as segment expense in the period the costs
are incurred. As a result, the Company will add back capitalized
internal software costs and exclude amortization of internally developed
software costs previously capitalized from segment expenses. Segment
expenses also exclude the effects of the Company's fiscal year 2014
rebalancing plan. Prior period segment expenses and profit information
has been revised to present segment profit and expenses on a consistent
basis and is available in the 8-K filed today and in the Company's
supplemental financial package, both of which are available at www.ca.com/invest.

First Quarter FY14 vs. FY13

Revenue

%Change

%ChangeCC**

Operating Margin

(dollars in millions)

FY14

FY13

FY14

FY13

Mainframe Solutions

$619

$628

(1%)

(1%)

61%

58%

Enterprise Solutions

$411

$426

(4%)

(3%)

10%

16%

Services

$98

$91

8%

8%

8%

4%

**CC: Constant Currency

Enterprise Solutions operating margin in the first quarter of fiscal
year 2013 was positively affected by the intellectual property
transaction mentioned above.

CASH FLOW FROM OPERATIONS

Cash flow from operations in the first quarter was $11 million,
compared with $183 million in the prior year. The decline
year-over-year was due to a number of expected factors including
higher cash taxes, payments related to the rebalancing actions and a
reduction in capitalized software development. Cash flow from
operations also was negatively affected by lower cash collections,
including a decrease in single installment collections. The prior year
period also included the positive impact from the intellectual
property transaction.

CAPITAL STRUCTURE

Cash, cash equivalents and investments at June 30, 2013 were $2.461
billion.

With $1.285 billion in total debt outstanding and $138 million in
notional pooling, the Company's net cash, cash equivalents and
investments position was $1.038 billion.

In the first quarter of fiscal year 2014, the Company repurchased 2
million shares of stock for $53 million.

The Company is currently authorized to repurchase an additional $452
million of common stock through fiscal year 2014.

During the first quarter of fiscal year 2014, the Company distributed
$114 million in dividends to shareholders.

The Company's outstanding share count at June 30, 2013 was 451 million.

OUTLOOK FOR FISCAL YEAR 2014

The Company reaffirmed the following outlook, which represents
"forward-looking statements" (as defined below). It takes into account
the change in business practice regarding internally developed software
costs, the costs and payments associated with the rebalancing initiative
announced on May 7, 2013 and the resolution of the U.S. tax matter
mentioned above.

The Company expects the following:

GAAP diluted earnings per share decreases in a range of minus 11
percent to minus 6 percent in constant currency. At June 30, 2013
exchange rates, this translates to GAAP reported diluted earnings per
share of $1.81 to $1.91.

Non-GAAP diluted earnings per share increases in a range of 16 percent
to 20 percent in constant currency. At June 30, 2013 exchange rates,
this translates to reported non-GAAP diluted earnings per share of
$2.90 to $3.00.

Cash flow from operations decreases in a range of minus 30 percent to
minus 24 percent in constant currency. At June 30, 2013 exchange
rates, this translates to reported cash flow from operations of $960
million to $1.04 billion.

Total revenue outlook decreases in a range of minus 4 percent to minus
2 percent in constant currency. At June 30, 2013 exchange rates, this
translates to reported revenue of $4.39 billion to $4.48 billion.

Outlook for cash flow from operations is being adversely affected by
costs associated with the rebalancing of resources during the fiscal
year, an increase in cash taxes, and an increase in operating cash
outflows relating to product development and enhancements expense for
fiscal year 2014. In fiscal year 2013, cash flow from operations did not
reflect $165 million of capitalized software development costs that
appeared as an investment activity in our Statement of Cash Flows.

This outlook also assumes no material acquisitions and a partial
currency hedge of operating income. The Company continues to expect a
full-year GAAP operating margin of 23 percent and non-GAAP operating
margin of 36 percent. The Company expects a fiscal year 2014 GAAP and
non-GAAP effective tax rate of approximately 14 percent.

The Company anticipates approximately 437 million shares outstanding at
fiscal year 2014 year-end and weighted average diluted shares
outstanding of approximately 446 million for the fiscal year.

Webcast

This news release and the accompanying tables should be read in
conjunction with additional content that is available on the Company's
website, including a supplemental financial package, as well as a
conference call and webcast that the Company will host at 5 p.m. ET
today to discuss its unaudited first quarter results. The webcast will
be archived on the website. Individuals can access the webcast, as well
as the press release and supplemental financial information at http://ca.com/invest
or can listen to the call at 1-877-561-2748. The international
participant number is 1-720-545-0044.

About CA Technologies

CA Technologies (NASDAQ: CA) provides IT management solutions that help
customers manage and secure complex IT environments to support agile
business services. Organizations leverage CA Technologies software and
SaaS solutions to accelerate innovation, transform infrastructure and
secure data and identities, from the data center to the cloud. Learn
more about CA Technologies at www.ca.com.

This news release, the accompanying tables and the additional content
that is available on the Company's website, including a supplemental
financial package, includes certain financial measures that exclude the
impact of certain items and therefore have not been calculated in
accordance with U.S. generally accepted accounting principles (GAAP).
Non-GAAP metrics for operating expenses, operating income, operating
margin, income from continuing operations and diluted earnings per share
exclude the following items: non-cash amortization of purchased software
and other intangibles, share-based compensation, fiscal year 2007
restructuring costs, recoveries and certain costs associated with
derivative litigation matters and certain other gains and losses, which
include the gains and losses since inception of hedges that mature
within the quarter, but exclude gains and losses of hedges that do not
mature within the quarter. The Company will expense costs for internally
developed software where development efforts commenced in the first
quarter of fiscal year 2014 and afterwards. As a result, product
development and enhancement expenses are expected to increase in future
periods as the amount capitalized for internally developed software
costs decreases. Due to this change, the Company will also add back
capitalized internal software costs and exclude the amortization of
internal software costs from these non-GAAP metrics. Also beginning in
the first quarter of fiscal year 2014, the Company will exclude charges
relating to rebalancing initiatives that are large enough to require
approval from the Company's Board of Directors. The effective tax rate
on GAAP and non-GAAP income from operations is the Company's provision
for income taxes expressed as a percentage of pre-tax GAAP and non-GAAP
income from continuing operations, respectively. These tax rates are
determined based on an estimated effective full year tax rate, with the
effective tax rate for GAAP generally including the impact of discrete
items in the period in which such items arise and the effective tax rate
for non-GAAP generally allocating the impact of discrete items pro rata
to the fiscal year's remaining reporting periods. Adjusted cash flow
from operations excludes payments associated with the fiscal year 2014
Board-approved rebalancing initiative as described above, capitalized
software development costs as described above, and restructuring and
other payments. Free cash flow excludes purchases of property and
equipment and capitalized software development costs. We present
constant currency information to provide a framework for assessing how
our underlying businesses performed excluding the effect of foreign
currency rate fluctuations. To present this information, current and
comparative prior period results for entities reporting in currencies
other than U.S. dollars are converted into U.S. dollars at the exchange
rate in effect on the last day of our prior fiscal year (i.e., March 31,
2013, March 31, 2012 and March 31, 2011, respectively). Constant
currency excludes the impacts from the Company's hedging program. The
constant currency calculation for annualized subscription and
maintenance bookings is calculated by dividing the subscription and
maintenance bookings in constant currency by the weighted average
subscription and maintenance duration in years. These non-GAAP financial
measures may be different from non-GAAP financial measures used by other
companies. Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. By excluding these items, non-GAAP
financial measures facilitate management's internal comparisons to the
Company's historical operating results and cash flows, to competitors'
operating results and cash flows, and to estimates made by securities
analysts. Management uses these non-GAAP financial measures internally
to evaluate its performance and they are key variables in determining
management incentive compensation. The Company believes these non-GAAP
financial measures are useful to investors in allowing for greater
transparency of supplemental information used by management in its
financial and operational decision-making. In addition, the Company has
historically reported similar non-GAAP financial measures to its
investors and believes that the inclusion of comparative numbers
provides consistency in its financial reporting. Investors are
encouraged to review the reconciliation of the non-GAAP financial
measures used in this news release to their most directly comparable
GAAP financial measures, which are attached to this news release.

Cautionary Statement Regarding Forward-Looking Statements

The declaration and payment of future dividends is subject to the
determination of the Company's Board of Directors, in its sole
discretion, after considering various factors, including the Company's
financial condition, historical and forecast operating results, and
available cash flow, as well as any applicable laws and contractual
covenants and any other relevant factors. The Company's practice
regarding payment of dividends may be modified at any time and from time
to time.

Repurchases under the Company's stock repurchase program are expected to
be made with cash on hand and may be made from time to time, subject to
market conditions and other factors, in the open market, through
solicited or unsolicited privately negotiated transactions or otherwise.
The program, which is authorized through the fiscal year ending March
31, 2014, does not obligate the Company to acquire any particular amount
of common stock, and it may be modified or suspended at any time at the
Company's discretion.

Certain statements in this communication (such as statements containing
the words "believes," "plans," "anticipates," "expects," "estimates,"
"targets" and similar expressions relating to the future) constitute
"forward-looking statements" that are based upon the beliefs of, and
assumptions made by, the Company's management, as well as information
currently available to management. These forward-looking statements
reflect the Company's current views with respect to future events and
are subject to certain risks, uncertainties, and assumptions. A number
of important factors could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the ability to achieve success in the Company's strategy by,
among other things, effectively rebalancing the Company's sales force to
enable the Company to maintain and enhance its strong relationships in
its traditional customer base of large enterprises and to increase
penetration in growth markets and with large enterprises that have not
historically been significant customers, enabling the sales force to
sell new products, improving the Company's brand in the marketplace and
ensuring the Company's set of cloud computing, application development
and IT operations (DevOps), Software-as-a-Service, mobile device
management and other new offerings address the needs of a rapidly
changing market, while not adversely affecting the demand for the
Company's traditional products or its profitability; global economic
factors or political events beyond the Company's control; general
economic conditions and credit constraints, or unfavorable economic
conditions in a particular region, industry or business sector; the
failure to adapt to technological changes and introduce new software
products and services in a timely manner; competition in product and
service offerings and pricing; the failure to expand partner programs;
the ability to retain and attract adequate qualified personnel; the
ability to integrate acquired companies and products into existing
businesses; the ability to adequately manage, evolve and protect
managerial and financial reporting systems and processes; the ability of
the Company's products to remain compatible with ever-changing operating
environments; breaches of the Company's software products and the
Company's and customers' data centers and IT environments; discovery of
errors or omissions in the Company's software products or documentation
and potential product liability claims; the failure to protect the
Company's intellectual property rights and source code; risks associated
with sales to government customers; access to software licensed from
third parties; risks associated with the use of software from open
source code sources; events or circumstances that would require us to
record an impairment charge relating to our goodwill or capitalized
software and other intangible asset balances; access to third-party code
and specifications for the development of code; third-party claims of
intellectual property infringement or royalty payments; fluctuations in
the number, terms and duration of the Company's license agreements as
well as the timing of orders from customers and channel partners; the
failure to renew large license transactions on a satisfactory basis;
changes in market conditions or the Company's credit ratings;
fluctuations in foreign currencies; the failure to effectively execute
the Company's workforce reductions, workforce re-balancing and facility
consolidations; successful outsourcing of various functions to third
parties; potential tax liabilities; acquisition opportunities that may
or may not arise; and other factors described more fully in the
Company's filings with the Securities and Exchange Commission. Should
one or more of these risks or uncertainties occur, or should our
assumptions prove incorrect, actual results may vary materially from
those described herein as believed, planned, anticipated, expected,
estimated, targeted or similarly expressed in a forward-looking manner.
The Company assumes no obligation to update the information in this
communication, except as otherwise required by law. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.

Other (gains) expenses, net includes approximately $120 million of
charges relating to the FY2014 Board approved re-balancing
initiative announced May 7, 2013, for the three month period ending
June 30, 2013.

Table 2

CA Technologies

Condensed Consolidated Balance Sheets

(in millions)

June 30,

March 31,

2013

2013

(unaudited)

Cash and cash equivalents

$

2,461

$

2,593

Short-term investments

-

183

Trade accounts receivable, net

537

856

Deferred income taxes

383

346

Other current assets

243

148

Total current assets

$

3,624

$

4,126

Property and equipment, net

$

298

$

311

Goodwill

5,916

5,871

Capitalized software and other intangible assets, net

1,293

1,231

Deferred income taxes

75

77

Other noncurrent assets, net

160

195

Total assets

$

11,366

$

11,811

Current portion of long-term debt

$

14

$

16

Deferred revenue (billed or collected)

2,230

2,482

Deferred income taxes

12

12

Other current liabilities

823

1,031

Total current liabilities

$

3,079

$

3,541

Long-term debt, net of current portion

$

1,271

$

1,274

Deferred income taxes

165

120

Deferred revenue (billed or collected)

899

975

Other noncurrent liabilities

322

451

Total liabilities

$

5,736

$

6,361

Common stock

$

59

$

59

Additional paid-in capital

3,546

3,593

Retained earnings

5,578

5,357

Accumulated other comprehensive loss

(198)

(155)

Treasury stock

(3,355)

(3,404)

Total stockholders' equity

$

5,630

$

5,450

Total liabilities and stockholders' equity

$

11,366

$

11,811

Table 3

CA Technologies

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in millions)

Three Months Ended

June 30,

2013

2012

Operating activities:

Net income

$

335

$

240

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization

105

105

Provision for deferred income taxes

(48)

25

Provision for bad debts

2

1

Share-based compensation expense

20

23

Asset impairments and other non-cash items

2

1

Foreign currency transaction (gains) losses

(1)

12

Changes in other operating assets and liabilities, net of effect of
acquisitions:

Decrease in trade accounts receivable

316

398

Decrease in deferred revenue

(317)

(394)

Decrease in taxes payable, net

(338)

(93)

Increase in accounts payable, accrued expenses and other

8

18

Decrease in accrued salaries, wages and commissions

(38)

(141)

Changes in other operating assets and liabilities

(35)

(12)

Net cash provided by operating activities

$

11

$

183

Investing activities:

Acquisitions of businesses, net of cash acquired, and purchased
software

$

(122)

$

(5)

Purchases of property and equipment

(13)

(22)

Capitalized software development costs

(25)

(36)

Maturities of short-term investments

184

-

Other investing activities

-

2

Net cash provided by (used in) investing activities

$

24

$

(61)

Financing activities:

Dividends paid

$

(114)

$

(119)

Purchases of common stock

(49)

(86)

Debt (repayments) borrowings, net

(2)

5

Debt issuance costs

(1)

-

Exercise of common stock options and other

28

17

Net cash used in financing activities

$

(138)

$

(183)

Net change in cash and cash equivalents before effect of
exchange ratechanges on cash

$

(103)

$

(61)

Effect of exchange rate changes on cash

$

(29)

$

(77)

Decrease in cash and cash equivalents

$

(132)

$

(138)

Cash and cash equivalents at beginning of period

$

2,593

$

2,679

Cash and cash equivalents at end of period

$

2,461

$

2,541

Table 4

CA Technologies

Operating Segments

(unaudited)

(dollars in millions)

Three Months Ended June 30, 2013

MainframeSolutions (1)

EnterpriseSolutions (1)

Services (1)

Total

Revenue (2)

$

619

$

411

$

98

$

1,128

Expenses (3)

242

370

90

702

Segment profit

$

377

$

41

$

8

$

426

Segment operating margin

61%

10%

8%

38%

Segment profit

$

426

Less:

Purchased software amortization

28

Other intangibles amortization

14

Software development costs capitalized

(23)

Internally developed software products amortization

41

Share-based compensation expense

20

Other (gains) expenses, net (4)

118

Interest expense, net

11

Income before income taxes

$

217

Three Months Ended June 30, 2012

MainframeSolutions (1)

EnterpriseSolutions (1)

Services (1)

Total

Revenue (2)

$

628

$

426

$

91

$

1,145

Expenses (3)

261

357

87

705

Segment profit

$

367

$

69

$

4

$

440

Segment operating margin

58%

16%

4%

38%

Segment profit

$

440

Less:

Purchased software amortization

27

Other intangibles amortization

14

Software development costs capitalized

(36)

Internally developed software products amortization

37

Share-based compensation expense

23

Other (gains) expenses, net (4)

(6)

Interest expense, net

11

Income before income taxes

$

370

(1)

• Mainframe Solutions — Our Mainframe Solutions segment addresses
the mainframe market and is focused on making significant
investments in order to be innovative in key management disciplines
across our broad portfolio of products. Ongoing development is
guided by customer needs, our cross-enterprise management philosophy
and our Next Generation Mainframe Management strategy, which offers
management capabilities designed to appeal to the next generation of
mainframe staff while also offering productivity improvements to
today's mainframe experts. Our mainframe business assists customers
by addressing three major challenges: reducing costs and improving
operational efficiency, sustaining critical skills through
modernized and simplified management, and increasing innovation and
agility to help deliver on business goals.

• Enterprise Solutions — Our Enterprise Solutions segment includes
products that operate on non-mainframe platforms, such as service
assurance, security (identity and access management), service and
portfolio management, application delivery, SaaS, and cloud
offerings. Our offerings help customers address their regulatory
compliance demands, privacy needs, and internal security policies.
Enterprise Solutions also focuses on delivering growth to the
Company in the form of new customer acquisitions and revenue,
while leveraging non-traditional routes-to-market and delivery
models.

• Services — Our Services segment offers implementation,
consulting, education and training services to customers, which is
intended to promote a seamless customer experience and to increase
the value that customers realize from our solutions.

(2)

We regularly enter into a single arrangement with a customer that
includes Mainframe Solutions segment software products, Enterprise
Solutions segment software products and Services. The amount of
contract revenue assigned to segments is generally based on the
manner in which the proposal is made to the customer. The software
product revenue is assigned to the Mainframe Solutions and
Enterprise Solutions segments based on either: (1) a list price
allocation method (which allocates a discount in the total contract
price to the individual products in proportion to the list price of
the product); (2) allocations included within internal contract
approval documents; or (3) the value for individual software
products as stated in the customer contract. The price for the
implementation, consulting, education and training services is
separately stated in the contract and these amounts of contract
revenue are assigned to the Services segment. The contract value
assigned to each segment is then recognized in a manner consistent
with the revenue recognition policies we apply to the customer
contract for purposes of preparing the Condensed Consolidated
Financial Statements.

(3)

Segment expenses include costs that are controllable by segment
managers (i.e., direct costs) and, in the case of the Mainframe
Solutions and Enterprise Solutions segments, an allocation of shared
and indirect costs (i.e., allocated costs). Segment-specific direct
costs include a portion of selling and marketing costs, licensing
and maintenance costs, product development costs and general and
administrative costs. Allocated segment costs primarily include
indirect selling and marketing costs and general and administrative
costs that are not directly attributable to a specific segment. The
basis for allocating shared and indirect costs between the Mainframe
Solutions and Enterprise Solutions segments is dependent on the
nature of the cost being allocated and is either in proportion to
segment revenues or in proportion to the related direct cost
category. Expenses for the Services segment consist only of direct
costs and there are no allocated or indirect costs for the Services
segment.

(4)

Other (gains) expenses, net includes charges relating to the
FY2014 Board approved re-balancing initiative announced May 7,
2013, certain foreign exchange derivative gains and losses, and
other miscellaneous costs.

Prior year segment results have been adjusted for internally
developed software.

Table 5

CA Technologies

Constant Currency Summary

(unaudited)

(dollars in millions)

Three Months Ended June 30,

2013

2012

% Increase(Decrease)in $ US

% Increase(Decrease)in ConstantCurrency (1)

Bookings

$

824

$

553

49%

53%

Revenue:

North America

$

717

$

726

(1%)

(1%)

International

411

419

(2%)

0%

Total revenue

$

1,128

$

1,145

(1%)

(1%)

Revenue:

Subscription and maintenance

$

944

$

977

(3%)

(3%)

Professional services

98

91

8%

8%

Software fees and other

86

77

12%

13%

Total revenue

$

1,128

$

1,145

(1%)

(1%)

Segment Revenue:

Mainframe solutions

$

619

$

628

(1%)

(1%)

Enterprise solutions

411

426

(4%)

(3%)

Services

98

91

8%

8%

Total expenses before interest and incometaxes:

Total non-GAAP (2)

$

702

$

705

0%

0%

Total GAAP

900

764

18%

18%

(1)

Constant currency information is presented to provide a framework
for assessing how our underlying businesses performed excluding the
effect of foreign currency rate fluctuations. To present this
information, current and comparative prior period results for
entities reporting in currencies other than US dollars are converted
into US dollars at the exchange rate in effect on March 31, 2013,
which was the last day of our prior fiscal year. Constant currency
excludes the impacts from the Company's hedging program.

(2)

Refer to Table 7 for a reconciliation of total expenses before
interest and income taxes to total non-GAAP operating expenses.

Prior year non-GAAP results have been adjusted for internally
developed software.

GAAP operating margin is calculated by dividing GAAP income before
interest and income taxes by total revenue (refer to Table 1 for
total revenue).

(2)

Non-GAAP adjustment consists of share-based compensation.

(3)

Non-GAAP adjustment consists of $28 million and $27 million of
purchased software amortization and $41 million and $37 million of
internally developed software products amortization for the three
month period ending June 30, 2013 and 2012, respectively.

(4)

Non-GAAP adjustment consists of $5 million and $4 million of
share-based compensation and ($23) million and ($36) million of
software development costs capitalized for the three month period
ending June 30, 2013 and 2012, respectively.

(5)

Non-GAAP adjustment consists of other intangibles amortization.

(6)

Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved re-balancing initiative announced May 7, 2013 and certain
other gains and losses, including gains and losses since inception
of hedges that mature within the quarter, but excludes gains and
losses of hedges that do not mature within the quarter.

(7)

Non-GAAP operating margin is calculated by dividing non-GAAP income
before interest and income taxes by total revenue (refer to Table 1
for total revenue).

(8)

The full year non-GAAP income tax expense is different from GAAP
income tax expense because of the difference in non-GAAP income
before income taxes. On an interim basis, this difference would also
include a difference in the impact of discrete and permanent items
where for GAAP purposes the effect is recorded in the period such
items arise, but for non-GAAP such items are recorded pro rata to
the fiscal year's remaining reporting periods.

Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.

Prior year non-GAAP results have been adjusted for internally
developed software.

Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved re-balancing initiative announced May 7, 2013 and certain
other gains and losses, including gains and losses since inception
of hedges that mature within the quarter, but excludes gains and
losses of hedges that do not mature within the quarter.

(2)

The non-GAAP effective tax rate is equal to the full year GAAP
effective tax rate, therefore no adjustment is required on an annual
basis. On an interim basis, the difference in non-GAAP income tax
expense and GAAP income tax expense relates to the difference in
non-GAAP income before income taxes, and includes a difference in
the impact of discrete and permanent items where for GAAP purposes
the effect is recorded in the period such items arise but for
non-GAAP purposes such items are recorded pro rata to the fiscal
year's remaining reporting periods.

Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.

Prior year non-GAAP results have been adjusted for internally
developed software.

Refer to Table 6 for a reconciliation of income before interest and
income taxes on a GAAP basis to income before interest and income
taxes on a non-GAAP basis.

(2)

The effective tax rate for GAAP generally includes the impact of
discrete and permanent items in the period such items arise, whereas
the effective tax rate for non-GAAP generally allocates the impact
of such items pro rata to the fiscal year's remaining reporting
periods.

(3)

The effective tax rate on GAAP and non-GAAP income is the Company's
provision for income taxes expressed as a percentage of GAAP and
non-GAAP income before income taxes, respectively. The non-GAAP
effective tax rate is equal to the full year GAAP effective tax
rate. On an interim basis, the effective tax rates are determined
based on an estimated effective full year tax rate after the
adjustments for the impacts of certain discrete items (such as
changes in tax rates, reconciliations of tax returns to tax
provisions and resolutions of tax contingencies).

Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.

Prior year non-GAAP results have been adjusted for internally
developed software.